πŸ”„Reward Distribution

Reward distribution schedule (0–6 Months)

Initially, we have 24 Million Creator tokens allocated for the first 6 months of W2E rewards, this is a ceiling on the rewards during the inflationary phase of the launch, however, we do not necessarily expect to reach it. The release schedule is expected to be data-driven with a view on the longevity and sustainability of the ecosystem.

We emphasise that the max cap will not be exceeded, and the goal here is to incentivize network effects and adoption amongst fans.

Example release:

PeriodCreator Tokens Released

Month 1

2,500,000

Month 2

3,000,000

Month 3

3,000,000

Month 4

4,000,000

Month 5

3,000,000

Month 6

2,500,000

Reward distribution schedule (6 months+)

After the initial six-month period, which we see as a bootstrapping phase for Creators and their ecosystem, the system becomes far more deflationary. W2E rewards will be aligned with the ecosystem burn rate, with tokens being burnt through various channels including trading volume fees, Utility transactions, NFT moments, and more.

The idea is that there will be a base rewards rate from month six onwards and this will be incremented with tokens burnt times some multiplier. For example, in the diagram below, the base rewards are R=250,000 tokens per month between months 6–9, with a multiplier of 0.9 on the burn rate. If the burn rate is 500,000 tokens per month during this time. This means that the rewards over these months will be 700,000 tokens per month. However, the inflation in the circulating supply from rewards will only be 200,000 tokens per month. Note that the multiplier is being reduced on a month-to-month basis to increase the deflationary effect. Eventually, we expect that more tokens will be taken out of circulation per month than are released as rewards.

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